CRVA would like to use this opportunity to applaud the government on the ratification of CUSMA on March 13th, before the House suspended due to the COVID-19 Virus epidemic. At a time of volatility in the market and when our economy is currently facing significant challenges from COVID-19, it is important to increase certainty in the markets and in maintaining access to our closest trading partner.
The North American RV industry benefits from strong trade relations with Canada and Mexico and the USMCA will ensure that the special trading relationship between our countries continues. The United States is the world’s largest producer of RVs, producing twice as many RVs as the rest of the world combined. Over 90 percent of those exports go to Canada – more than 50,000 RVs in 2017 and 33,000 in 2018. In Canada, 99 percent of RVs retailed are made in the United States. Mexico, while behind Canada, is also a top recipient country for RV shipments with 2 percent.
Importantly, USMCA maintains current rules of origin for RVs. While the new agreement increases the domestic content requirements for motor vehicles, the rules of origin will not change for RVs. Motorhomes will remain at 62.5 percent domestic content and travel trailers at 50 percent domestic content for duty-free treatment – the same as under current North American Free Trade Agreement rules.
USMCA will also encourage reducing technical barriers to trade between the three countries and promote regulatory coherence. Rather than burdening industry and business with duplicative, contradictory, or confusing standards and regulations, the agreement creates an inter-governmental coordinating body to promote cross border regulatory best practices. Critically, USMCA includes a process for mutual accreditation/recognition of technical regulations. Streamlining regulations and encouraging mutual recognition of standards will allow the RV industry to better compete within Canadian and Mexican markets.
The agreement was already approved in Mexico and the United States.
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